Beginning on 12:00 UTC, 2 Dec 2020, the premium rate of perpetual contracts (XBTUSD and ETHUSD) on Xena Exchange will be calculated using a new algorithm.
Price information of futures contracts will be collected from 3 major derivative exchanges: BitMEX, Deribit, and Binance. Using these prices and the current spot price, the implied forward rate will be calculated and then averaged across different contracts. The resulting rate will be averaged over time (1 hour prior) and will be used to define premium payments at each clearing. The maximum premium rate is limited to 25% per year (~0.068% per day, ~0.023% per 8h, ~0.003% per hour); Xena Exchange has the right to manually define the rate in case of extreme market conditions.
The new algorithm will increase the predictability of the premium rate while also allowing for better alignment with the market.